Short Sales in Sacramento are up in 2015

Short Sales in California are many times the reason for a foreclosure sale postponement

Short Sales in Sacramento are certainly up lately,California short sales and foreclosures up 2.2 percent Q1 2015 and as I look for reasons I come across information showing that Short Sales in California as a whole are increasing.

Sacramento Short Sales are poised to increase further, as California is up 58 percent in Bank Repossessions (24-month high). The percentage of short sales and foreclosures advanced 2.2 percent in the first quarter of 2015, the largest increase seen since 2012. The new home distressed data from Clear Capital, shows that many areas are still struggling to recover from the losses seen during the real estate market crash. The rise in distressed properties is likely an effect of six months of home value decreases across California. The average California home value peaked in August 2014 at $480,000 but bottomed out in February 2015 at $428,000.

“The rise we’re seeing in distressed saturation across the board is another sign that the legacy issues from the housing collapse are still being processed today, and suggests that homeowners are still trying to find a foothold in a slowly improving economy,” said Alex Villacorta, Ph.D., VP of Research and Analytics at Clear Capital.

“The uptick in distressed saturation and drastically moderating prices in the past year could mean that there is a backlog of shadow inventory hitting these judicial markets,” the report said. “If the supply continues to increase faster than demand, this area could see prices continue to fall, creating more uncertainty in overall home prices yet also potentially offering a housing bonanza with deals for investors and traditional home buyers alike.”

Clear Capiatal’s report suggests that the increasing foreclosure rates of Q1 could be from the abundance of distressed inventory coupled with the slow pace of the foreclosure process.

What about California State Taxes after short sale and the California mortgage debt relief?

Certified and trained to negotiate with your lender in your behalf, the Sacramento Certified Short Sale Specialists at Wereheretohelp.org and Forth Hoyt’s Sacramento Short Sale Center are ready to help you!

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Disclaimer: The information contained on this website is deemed reliable but not guaranteed in any way. This information is not to be taken as legal advice and consumers should always consult a Tax Professional, Attorney and Realtor befor deciding which foreclosure option to take.